Z Energy, which is contemplating a partial listing on the NZX in September, improved its operating profit in the year ended March but its reported profit was hit by various factors to see it halve from last year.
Earnings before interest, depreciation, amortisation and financial interests rose 13% to $195 million in the period from $172 million in the previous corresponding period (pcp). Profit was on 5% lower sales.
Z had improved margins of 9% in the period.
The company, which did not provide a total revenue line on its report lodged with the NZX, also used historic costing to reflect the difference in the price of its products at the start and end of a period.
Using the historic cost, the operating profit fell 18% to $170 million from $206 million in the pcp.
The reported profit fell 50% to $35 million from $70 million.
Z chief executive Mike Bennetts said in a statement the profit had been achieved in a highly competitive market and positioned the company well for future growth.
In an industry, which for some years had lacked adequate investment, Z was bucking the trend by consistently investing in new retail outlets as well as assets in its commercial markets and supply chain.
''Z retail sites pump substantially more volume than the industry average. We have a comprehensive national retail network and the flexibility to grow our reach by investing further in new sites as they become available.
The company expected to open four or five strategically-located sites every year for the next few years.
A strong convenience retail offer combined with 60 million transactions per year - second only to supermarkets - provided confidence in the growth potential of Z's convenience retailing.
New international contracts for refined fuel and crude oil negotiated by Z in the past year were expected to deliver substantial savings.
''While there has been an improvement in profitability to the point where there now exists confidence to make required infrastructure investment, this remains a high-fixed-cost, low-margin business.''
